The manufacturing sector in Japan continued to expand in February, albeit at a slower pace, the latest survey from Markit Economics showed on Monday with a manufacturing PMI score of 52.9.
That’s down from 55.4 in January, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Output reduced for the first time in five months while new order growth eased to the softest in the current sequence of expansion. Moreover, supply chain disruption continued to hinder manufacturing activity in February as a marked lengthening of delivery times exacerbated material shortages, leading to a further rapid rise in input cost inflation. To protect against delays and rising costs, stockpiles of raw materials and other inputs were raised at the sharpest pace in the survey history
The survey also showed that the services PMI tumbled to 42.7 in February from 47.6 in January, while the composite PMI slipped to 44.6 from 49.9.
New business fell further with the rate of reduction the quickest for six months. With demand conditions weakened by the ongoing pandemic, Japanese service providers attempted to draw in customers with a renewed reduction in prices charged, the first since last August.
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